STUTTGART (dpa-AFX) - Following setbacks last year, IT service provider GFT Technologies is aiming for stronger growth again in 2024. While day-to-day business is expected to grow by a double-digit percentage, the Executive Board anticipates a positive one-off effect from the acquisition of core banking specialist Sophos Solutions on pre-tax profit. Excluding this item, the target for pre-tax profit in 2024 is below analysts' average expectations, the company announced in Stuttgart on Thursday. The news was poorly received on the stock market.

By midday, the GFT share had lost around seven percent to 29.80 euros and was thus the clear laggard in the small-cap index SDax. Since the turn of the year, the stock has lost around four and a half percent.

After GFT CEO Marika Lulay cut her business targets several times last year, she is now aiming to increase revenue by 15 percent to 920 million euros in 2024. Adjusted for special items, earnings before interest and taxes are set to increase by 16 percent to 85 million euros.

In contrast, the manager is only aiming for an increase in earnings before taxes of six percent to 72 million euros. And even this increase is only due to a positive one-off effect of 9.5 million euros from the acquisition of Sophos Solutions.

GFT acquired the Colombian company in February. Sophos Solutions focuses on the modernization of core banking systems and cloud computing and has nothing to do with the British software provider Sophos, which produces virus protection programs.

In the past year, GFT increased its revenue by ten percent to just under 802 million euros according to preliminary figures. Pre-tax profit increased by three percent to around 68 million euros due to special effects. Net profit grew by five percent to 48 million euros.

GFT specializes in the digitalization of banks and insurance companies. Many of these companies have recently been renewing their computer systems. However, many clients were reluctant to invest in 2023. GFT's management therefore lowered its revenue forecast several times last year./stw/mis/nas